Investing in ETFs comes with many advantages when compared to buying shares of a company and mutual funds. ETFs (Exchange-Traded-Funds) are groups of investments that typically carry a theme such as a dividend, technology, large-cap, etc. ETFs can be bought and sold on stock exchanges like regular securities.
They offer investors a more stable and efficient form of trading through actively and passively managed funds. ETFs are an excellent vehicle for investing with the benefits of a comprehensive portfolio without the constant upkeep, stress, and research.
Vanguard Russell 1000 Growth ETF (VONG)
Vanguard Russell 1000 Growth ETF (NASDAQ:VONG) It is an ETF that tracks the Russell 1000 Index that offers exposure to large-cap stocks. It has over 500 stores in the fund, but it is comprised primarily of Apple Inc. (NASDAQ:AAPL), which takes up nearly 13%; Microsoft (NASDAQ:MSFT), which is 11%; and Amazon Inc. (NASDAQ:AMZN), which is approximately 5%.
As of April 26, VONG is trading at $61.76, also a plus in the list of large-cap ETFs. It is relatively inexpensive. Year-to-date, the fund is up almost 12.31%, making it one of the best-performing Vanguard ETFs this year. It has a 0.08% expense ratio and a 0.90% annual dividend yield.
VONG has seen a large amount of growth recently, and it is a stable ETF that follows large-cap companies. This fund is one of Vanguard’s best-performing ETFs this year and carries a decent dividend, making it a perfect portfolio piece.
Vanguard Dividend Appreciation ETF (VIG)
Vanguard Dividend Appreciation ETF (NYSE:VIG) It is a large-cap blended fund that tracks the S&P 500 Dividend Growers index. VIG is comprised of 315 stocks, with the largest holdings being Microsoft Inc., which takes up almost 5% of the fund, Apple Inc., which is 4%, and Exxon Mobil Corp. (NYSE:XOM), which is 3%.
As of April 26, the fund is trading at $153.68; it also has a decent amount of volume at over 1 million on average per month. Year-to-date VIG is up approximately 2%; It has a low expense ratio of just 0.06%. Where it shines is the annual dividend yield which is 1.93%, which is nearly double what most other Vanguard ETFs offer.
VIG has tripled in price over the last ten years. With its substantial dividend yield and steady growth, this fund is a perfect addition to an investor’s ETF portfolio.
Vanguard Small-Cap Growth ETF (VBK)
Vanguard Small-Cap Growth ETF (NYSE:VBK) VBK is a small-cap growth fund that tracks the CRSP U.S. Small-Cap Growth Index. This fund holds 671 stocks, with the three primary holdings being Fair Issac Corp. (NYSE:FICO) which takes up 0.85%, Tanga Resources Corp. (NYSE:TRGP), which is 0.84%, and Liberty Media Corp-Liberty Formula One (NASDAQ:FWONK), which is 0.75%.
As of April 26, the price of VBK sits at $209.67, and its year-to-date return is 4.74%. Its expense ratio is 0.07%.
This fund is best suited for investors looking for exposure to small-cap companies while avoiding the large amount of risk that comes with that investment strategy. VBK has grown consistently over the years since its inception in 2004.
On the date of publication, Noah Bolton did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
